net . Lifeway also produces a line of products marketed in US
Hispanic communities, called La Fruta Drinkable Yogurt (yogurt drinks distinct
from kefir).

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,
(Nasdaq: LWAY), makers of a nutritious, milk-based cultured beverage called
kefir, announced today for the fourth quarter ended December 31, 2005, Lifeway
Foods sales increased 22% to $5,207,578 from $4,271,391 during the same period
a year ago.
Four flavors of LowFat Kefir including Plain, Strawberry, Raspberry, and
Blueberry will be carried in up to 193 stores where military personnel,
retirees and their families could purchase groceries in a safe and secure
shopping environment.
Julie Smolyansky, Lifeway's President and CEO said , "These commissaries
constitute the 16th largest grocery retailer in the country with annual sales
of approximately $5 billion and we are thrilled that Lifeway Kefir will be on
the shelves in their locations. Lifeway now
offers 13 different flavors of its Kefir beverage, Organic Kefir and SoyTreat
(a soy based kefir).

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lifeway.

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In addition to its line of Kefir products, the company also
produces a variety of cheese products and an organic line of pudding called
It's Pudding! Lifeway has also recently introduced an all-natural, full fat
Greek Style Kefir.net .

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Forward-looking statements involve risks and uncertainties
including, but not limited to, competitive pressures and other important
factors detailed in the Company's reports filed with the Securities and
Exchange Commission. MORTON GROVE, Ill. The first purchase orders from military distributors
will be shipped this week . Kefir is a milk-based beverage
that contains ten types of "friendly," active probiotic cultures .

cultured advancements

Lifeway Foods Reports Record Fourth Quarter and 2005 Year End Sales Results

cultured milks

(Nasdaq: LWAY), the nation's leading kefir manufacturer, today announced
distribution of their award winning kefir to military commissaries that are
run by the Defense Commissary Agency (DeCa) headquartered in Fort Lee,
Virginia.
DeCa believes in supporting America's military by enhancing their quality
of life with such benefits as commissaries that allow military families to
save on necessary grocery items.

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Kefir is a dairy beverage that
contains ten types of "friendly," active probiotic cultures .

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We look forward to another great
year."
Lifeway, named as Forbes' 38th best small business and Fortune Small
Business' 47th Fastest Growing Small Business, is America's leading supplier
of the cultured dairy product known as kefir.

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ultrafiltration clarification

While most
regular yogurt only contains two or three of these cultures, Lifeway kefir
products offer more nutritional benefits. Purchasing Lifeway Kefir also contributes to
a stronger quality of life, as it is an all around healthy product that
provides a great source of calcium and protein and also contains Lifeway's ten
probiotic cultures that are vital for the immune and digestive system.

igf cultured

whey innovate

at (847) 967-1010 or
e-mail at http://www .

lactic cultured

For the 2005 year ended December 31, 2005, sales rose 23% to
$20,131,654, compared to $16,319 ,210 for 2004 year, an increase of $3,812,444.
Julie Smolyansky, Lifeway's CEO, commented, "2005 was a milestone year for
Lifeway Foods."

About Lifeway Foods, Inc.

Lifeway Foods Introduces Kefir to Military Commissaries

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nanofiltration advancements

We started the year off by completely redesigning our
packaging for our flagship Kefir line, which made award-winning product even
more appealing to customers and this was evident all year long in our sales
growth and the number of new customers we were able to attract, such as
Target, Walmart and most recently Costco.

For more information, contact Lifeway Foods, Inc.

This news release contains forward-looking statements.

credible dairy

Lifeway , named as Forbes' 38th best small business and Fortune Small
Business' 47th Fastest Growing Small Business, is America's leading supplier
of the cultured dairy product known as kefir., Lifeway Foods , Inc.lifeway.

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microfiltration probiotics

, Lifeway Foods Inc. Lifeway
also produces a line of products marketed in US Hispanic communities, called
La Fruta Drinkable Yogurt (yogurt drinks distinct from kefir).

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Websites concerned with the science and practice of the food processing of dairy produce.

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-- Sales for 4th Quarter 2005 Rose 22%
-- Sales for 2005 Rose 23%

MORTON GROVE, Ill. We also saw our sales to our
existing customers increase by double digits as well.

cultured fermented

"We started 2006 off by ringing the closing bell at the NASDAQ, and in the
coming months we will be updating the packaging for the rest of our product
line, as well as introducing a variety of healthy, nutritious dairy products
to bolster our already strong product line.
For more information, contact Lifeway Foods, Inc . at (847) 967-1010 or
e-mail at http://www.

dairy lactic

Lifeway offers 12 different flavors
of its Kefir beverage, Organic Kefir and SoyTreat (a soy based kefir). Investors are
cautioned that actual results may differ materially from such forward-looking
statements.

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In addition to
its line of Kefir products , the company produces a variety of cheese products
and recently introduced a line of organic pudding called It's Pudding!.

ultrafiltration proteins

clarification antimicrobial